How could a Bank of Canada rate hike impact B.C.’s housing market?
Real estate experts say B.C.’s housing market is heating back after cooling off due to rising interest rates but the future is uncertain as several economists expect the Bank of Canada to hike rates again.
Home sales have rebounded and increased recently, while an overall lack of supply continues to keep prices and demand relatively high. The BC Real Estate Association's chief economist Brendon Ogmundson says he doesn’t think an incoming rate increase will stop the momentum significantly.
“We will see sales dip a little from where they are today,” he told CTV News. “But, that said, this market has been extraordinarily resilient even with rates as high as they are we’re seeing sales come back to normal levels, so it’s hard to say an extra 25 basis points is going to make that much of a difference.”
Ogmundson also says some changes are already happening in anticipation of a potential rate increase.
"?Five year fixed mortgage rates are already beginning to rise and we could see that temper some of the recovery that’s currently underway,” he said.
Two new surveys done by major banks show Canadians consider homeownership to be important, but report there are ongoing concerns aabout chieving it.
"Many Canadians recognize that homeownership could be out of reach for their children, unless they have help with a down payment," said Carissa Lucreziano, CIBC's vice-president of financial and investment advice, in a news release about its survey results.
"Being able to help your children save for a home is a great gift, however you need to be aware of how it can impact your own finances such as effectively managing your cashflow, paying down your own debt or saving for retirement."
According to BMO's survey, 72 per cent of Vancouverites feel a home is “is more out of reach compared to their parents” and 67 per cent are planning to wait until mortgage rates drop before buying.
But Ogmundson says the latest housing market stats show more buyers are back in the game.
“In April and May the market really picked up. I think there’s just a relentless amount of demand in this market and people were on the sidelines for a year and decided that was long enough.”
For those on the house hunt Ogmundson has this advice: “Don’t try to time the market. Find something that’s right for you and, crucially, that you can afford and that you are comfortable with affording long term.”
CTVNews.ca Top Stories
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
B.C. theatre to pay $55K to neurodivergent actor in discrimination case
British Columbia's human rights tribunal has awarded a neurodigergent actor, who was diagnosed with sensory and learning disorders, more than $55,000 after finding that a Kelowna theatre company discriminated against him because of his disabilities.
Who's responsible for regulating cannabis stores operating under the sovereignty banner?
It's not quite clear who is supposed to be regulating so-called sovereign cannabis stores or even ensure they're benefiting Indigenous communities.